Ocwen spinoff isn’t worried about California ban

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Last Friday, Altisource CEO William Shepro said the company believes the likelihood of a suspension of Ocwen’s mortgage license is “very low,” according to Forbes. Shortly after the announcement, Altisource’s share surged nearly 60%, while Ocwen shares rose over 15%.

Altisource was spun out of mortgage servicer Ocwen in 2009, but still gets 65% of its revenues from Ocwen. The billionaire CEO of Ocwen, Bill Erbey, is also chairman of Altisource.

The California action is the latest against the Atlanta-based servicer, which is currently dealing with a mountain of regulatory issues. California is accusing Ocwen of defying requests for information by the California Department of Business Oversight (CDBO), which manages the licensing of nonbank mortgage lenders, according to the Los Angeles Times.

Tom Dresslar, spokesman for the state agency, told the newspaper that losing a California license would mean that Ocwen, based in Atlanta, would have to sell its rights to handle bill collection and foreclosures in the state.

COMMENTS

by Stanj| 1/19/2015 10:46:48 AM

As both an appraiser and a former client of Ocwen I have found the company to have submitted false and misleading information to its customers and its policies considered to be as unreasonable. Yes, The State of California should do its job of protecting the people from this and other unethical lending institutions.

by Greg| 1/19/2015 12:03:05 PM

Entities such as Green Tree Servicing, in cahoots with Bank of America (aka BAC, aka BANA, fka Countrywide, ) with the help of their "trusty" substitute trustee lawyers, along with Fannie Mae, (this is just to name a few) are committing: forgery,wire fraud, mail fraud, securities fraud, racketeering, notary fraud(to name a few) , and fraud upon the courts all to fraudulently foreclose on homeowners who were LIED to from the beginning. Fraud at the inception, fraud in the middle, and now fraud at the end. Forging homeowners signatures on mortgage deeds and adding "ta da" endorsements and submitting the FORGED documents to the courts, who in turn look the other way . Welcome to America-home of the corrupt and land of the snakes.

by joe| 1/19/2015 7:17:29 PM

Please google ( fees for friends scandal us department of hud ) look at the players and look at were they r today .even coumo that's right ocwen .these people r not there to protect us there there put a show on letting ocwen steal our homes life's and health .they want us to believe there doing something next there will be a settlement ocwen will go on doing the some thing !!! Why is it that other states see this and the complaints after complaints and r doing nothing .it's not just happening in new York and California